How does franchise bidding work?

Operating companies have to submit detailed proposals running into many hundreds of pages on how they will run the trains, why they are suitable – and how much they will pay for the privilege.

Four firms were shortlisted to run the west coast main line by the Department for Transport, which also sets detailed parameters for the overall service.

The government has made it very clear it wants to cut costs to the taxpayer – so it may be little surprise that the firm that offered to give the most money back to a heavily subsidised industry got the prize, whatever the long-term risk.

And what is the risk?

Previous big bidders have walked away before the franchise is up – meaning that the juicily anticipated cash doesn't roll in after all. Some think the optimistic growth forecasts just don't add up.

What will change on the trains?

A nice new livery to match the new, yet-to-be-announced brand – possibly Horizon, a name FirstGroup has registered at Companies House. There will be direct trains, around five a day, running from the capital to destinations including Blackpool, Shrewsbury and Bolton.

FirstGroup claims reports of slashed catering are completely wrong, though be warned that "at-seat dining" is code for a trolley. Premium economy seating may come in, with fewer empty first-class seats. Better, free wifi should be an easy promise to keep, plus smart ticketing across the network.

And what happens to the staff?

Under employment protection regulations, most below board level will simply be working for FirstGroup, in a new uniform. Unions fear hundreds will eventually be laid off, but Tim O'Toole, FirstGroup's chief executive, denies it. He did say, however, that many backroom staff will move to dealing with customers.

What about fares?

Most regulated fares are still set by the government, but that generally gives the benchmark for operators to bring the rest up too. FirstGroup has pledged to cut walk-up standard anytime fares by 15%, but these only amount to one in five tickets sold and the price-conscious majority will still avoid these eye-watering peak price tickets.